UK bank safety plans ‘do not go far enough’

The man in charge of ensuring Britain’s financial stability has warned parliamentarians that current plans to make banks safer do not go far enough.

UK newspaper the Independent reports Bank of England executive director for financial stability Andrew Haldane said banks should be threatened with compulsory breakup to force their compliance.

He made the comments to Members of Parliament running the parliamentary enquiry into banking standards.

Haldane also said the ring-fencing plans recommended by Sir John Vickers [in his report on the banking industry] should go ahead, the paper reported.

“We [the Bank of England] are strongly of the view that full and faithful implementation of Vickers would be a significant and positive step. There are questions about whether it would be sufficient. I would prefer a clearer ring-fence in a different place.”